HRA Self-Financing
The government claims that the current arrangement for financing council housing – through the Housing Revenue Account subsidy system – is complex, leaves councils uncertain about future income and doesn’t enable them to plan long-term.
It plans to replace this with a new self-financing arrangement that is intended to enable councils to keep all the rent money they raise and spend it locally on their services. It is also intended to enable tenants and local taxpayers to hold their landlord to account for the cost and quality of their housing. The government claims that this will give them a more predictable and stable basis to plan for the long term.
DCLG guide to Housing Revenue Account Self-financing proposals